Unit 4 AOS 1 Flashcards
(64 cards)
Barriers to entry
Obstacles that prevent new competitors from entering an industry. Eg: high investment costs, competitor patients or government regulations
Benchmarking
Occurs when a business measures its performance against that of other leading businesses known for their excellence
Business Change
The alteration of behaviours, policies and practices by a business
Competitive advantage
When a business is able to differentiate their product or service from their competitors by cost, quality or service
Customer engagement
The interaction between a business and its customers by which it aims to develop brand awareness and loyalty.
Differentiation
Offers customers unique service or product feature that are of perceived value to customers which can then be sold at a higher price than competitors
Driving forces
Factors within or outside the business’ environment which promote change
Economies of scale
The cost savings a business experiences when it produces in large quantities, whereby fixed costs of production are spread across the large volume of items produced in bulk-buying discounts are received from suppliers
Employer of Choice
Is a business that attracts and retains highly skilled employees as it has established an inclusive workplace environment and positive corporate culture.
Force Field Analysis (Lewin)
A tool used to compare forces for and against change so that an informed decision can be made regarding a proposed change
Gap in the market
When there is a need that is currently unmet in an industry and poses a profitable opportunity for businesses.
Globalisation
The movement across nations of trade, investment, technology, finance and labour brought about by the removal of trade barriers
Innovation
The creation of a new idea in the form of a new process, product or method.
Key performance indicators (KPIs)
Criteria that measure the business’ performance in achieving their objectives over a certain period
Level of staff turnover
Measures the number of staff leaving the business which have to be replaced
Level of wastage
Measures the amount of inputs and outputs that are discarded by the business during the operations process
Low cost
Is a business offering customers lower-priced products compared to the industry average while remaining profitable by achieving the lowest cost of operations among competitors
Net profit figures
Calculated by deducting total expenses incurred from total revenues earned over a period of time
No-frills products
Number of customer complaints
Number of sales
Number of workplace accidents
Organisational inertia
